Renewable Energy Gains Ground as Report Looks Ahead to 2025

The latest projections for U.S. energy use from DOE's Energy
Information Administration (EIA) present a much more favorable
projection of renewable energy use than last year's report. EIA now
predicts that electricity production from renewable energy sources
will grow 2.1 percent per year through 2025; last year's report
expected only a 1.3 percent annual growth through 2020. The result
is that renewable sources will generate 495 billion kilowatt-hours
of electricity in 2025, or about 9 percent of all power generation.

The projected declines in energy intensity-the amount of energy
used per dollar of gross domestic product-remain the same as last
year's projections, dropping 1.5 percent per year, and the total
projected energy use remains roughly the same. But with a dropping
market share for power production from coal, natural gas demand is
projected to grow by 54 percent by 2025. To meet that demand, EIA
projects increased natural gas production in the Rocky Mountains
from unconventional sources such as coalbed methane, construction of
an Alaskan natural gas pipeline, and expanded U.S. facilities for
importing liquefied natural gas (LNG).

But despite all efforts to draw on natural gas, renewable sources,
and energy efficiency, the EIA report projects that U.S. dependence
on oil imports will increase. Imports currently provide 55 percent
of U.S. petroleum demand; by 2025, the country will depend on
imports for 68 percent of its petroleum needs. See the EIA press
release, or go directly to the Annual Energy Outlook 2003. For comparison with last year's projections, see the November 21, 2001, edition of EREN Network News.